Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite significant volatility, global markets reported gains in the third quarter. The Ariel Global fund appreciated +6.94% in the quarter outperforming the +6.61% return of its primary benchmark, the MSCI ACWI Index, and trailing the +9.42% return of its secondary benchmark, the MSCI ACWI Value Index. Ariel follows a non-consensus approach to identify undervalued, out-of-favor franchises that are misunderstood and mispriced. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Global Fund highlighted stocks like Check Point Software Technologies Ltd. (NASDAQ:CHKP) in the Q3 2024 investor letter. Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a technology company that develops, markets, and supports a range of products and services for IT security. The one-month return of Check Point Software Technologies Ltd. (NASDAQ:CHKP) was -15.01%, and its shares gained 21.70% of their value over the last 52 weeks. On November 19, 2024, Check Point Software Technologies Ltd. (NASDAQ:CHKP) stock closed at $174.56 per share with a market capitalization of $19.199 billion.
Ariel Global Fund stated the following regarding Check Point Software Technologies Ltd. (NASDAQ:CHKP) in its Q3 2024 investor letter:
“Israeli based provider of products for information technology security, Check Point Software Technologies Ltd. (NASDAQ:CHKP) also advanced following solid quarterly earnings results. Double-digit billings growth was particularly strong across geographies. Consumers appear to be adopting more pillars of Check Point’s platform and engaging in larger strategic commitments with Infinity and Quantum Force. The company also announced the appointment of new CEO Nadav Zafrir, whose reputation is well established in the cyber community. Meanwhile, Check Point continues to be an astute steward of capital, pursuing organic growth and utilizing surplus cash to return capital to shareholders. We continue to favor the company’s exposure to the fast-growing cloud security market and its industry leading profitability.”
An engineer typing on a computer, developing the latest cybersecurity application.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Check Point Software Technologies Ltd. (NASDAQ:CHKP) at the end of the third quarter which was 31 in the previous quarter. Check Point Software Technologies Ltd.’s (NASDAQ:CHKP) third-quarter revenue increased 7% year-over-year to $635 million, exceeding projections by $3 million. While we acknowledge the potential of Check Point Software Technologies Ltd. (NASDAQ:CHKP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.